Renault has denied rumors that it is pulling out of plans to expand vehicle production at its Palencia plant in Spain and stressed that negotiations with unions are ongoing.
The story published by Reuters on May 7 was based on union representatives not agreeing to certain conditions for Renault to bring production of new models to the manufacturing facility in northern Spain.
Palencia is currently the production home factory of the Renault Austral midsize SUV and was expecting to take on another three models with electric and hybrid powertrains, but the plans were suspended for not reaching an agreement with labor unions in Spain.
In an emailed statement to WardsAuto, the company said its Spain business unit Renault RESA has proposed a wage agreement for employees covering the years 2026, 2027 and 2028, which has been under discussion since December 2025.
“Social dialogue is continuing with the aim of reaching an agreement that is satisfactory for all parties in the coming weeks,” Renault’s statement said. “The agreement will be finalized once the majority of representative organizations have signed it,” it added.
The negotiations involve five prominent labor unions in Spain, including the Unión General de Trabajadores, Confederación Sindical de Comisiones Obreras, Sucursal Española de la Fundación, Confederación General del Trabajo and the Central Sindical Independiente y de Funcionarios.
